Case Study: Journal Entries and Reconciliations

SAP Business One 10.0 (version for SAP HANA)

PUBLIC
CASE STUDY: JOURNAL ENTRIES AND RECONCILIATIONS PUBLIC

INTRODUCTION

In this case study, you will perform the following tasks:

• Create a journal entry
• Create a posting template
• Create a recurring journal entry
• Reverse a journal entry
• Create a journal voucher
• View reconciled transactions
• Create user reconciliations

PREREQUISITE:
1. Use the demo database for SAP Business One 10.0, version for SAP HANA or SAP Business One 10.0
2. Credentials: User code: manager; Initial Password: manager.
3. Make sure the payment terms for business partner C30000 are set to Cash Basic in the business partner
master data:

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CASE STUDY: JOURNAL ENTRIES AND RECONCILIATIONS PUBLIC

TASK 1

OEC Computers started running SAP Business One®, and has already posted documents such as invoices
and payments in the system. The company is now familiar with the journal entries that are automatically
created with these documents.
Maria, the accountant, wants to enter a manual journal entry for a bonus payout. The bonus amount is 5000
and is paid directly from the bank account. The offset account in this journal entry is a salary/ payroll
account. The bank reference for this transaction is 4414.

In the Chart of Accounts, locate a bank account from the Asset drawer and a salary/ payroll account
from the Liabilities drawer.

Create a suitable journal entry for the bonus payout.

TASK 2

Two of OEC’s customers have merged into one company. Maria needs to transfer the balance of customer
C30000 to C4000.

Create a suitable journal entry for the balance transfer.

TASK 3

Every month, Maria creates a journal entry for a rental payout of 10,000. In this transaction, the rental
expense account (620000) is debited, and the bank account (161000) is credited.

• Create a recurring posting for the rental journal entry.

• What happens on the execution day?

TASK 4

OEC Computers wants to donate to 4 charity organizations each month, depending on the monthly profit.
The donation amount should be divided equally between the 4 organizations.

Add 4 accounts at level 5 in the liabilities drawer as follows:

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CASE STUDY: JOURNAL ENTRIES AND RECONCILIATIONS PUBLIC

Code Name

206101 Charity1

206102 Charity2

206103 Charity3

206104 Charity4

• Create a posting template where each charity organization receives an equal share of the
profit. You can use expense account 655030 in the credit side.
• The amount for donation this month is 10,000. Create a journal entry using the template you
created.

TASK 5

The amount entered in the donation transaction was incorrect.

How can Maria amend the mistake?

TASK 6

Once a month, Maria enters a salary journal entry for all employees. This entry contains more than 50 rows.
She would like to be able to save a journal entry while working on it and go back to the journal entry to add
more rows at a later stage.

How can Maria save a draft of her journal entry?

TASK 7

Every day, Maria receives payments from customers. When she creates the incoming payments, she
chooses the related invoices. Maria can see that the customer is balanced, but she wants to be sure that the
invoice and incoming payment are reconciled.

Show Maria where she can view the reconciliation made between the invoices and payments.

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CASE STUDY: JOURNAL ENTRIES AND RECONCILIATIONS PUBLIC

TASK 8

An invoice was issued to one of the customers.

Create an invoice in the amount of 150 for any customer.
The customer only paid 100.
Create an incoming payment for a partial amount of only 100.
The customer refuses to pay the balance due. Maria decides to move the amount to the bad debts expenses
account (650030), which allows her to close the open balance.
• Create a suitable journal entry.
• Look for the reconciliation you made in the Manage Previous Internal Reconciliations window
• How do you know this is a user reconciliation?

TASK 9 (CHALLENGE)

When OEC Computers started running SAP Business One on January 1, open invoices were transferred
from the legacy system as opening balance journal entries. There is one journal entry for each invoice.
These opening balances were created only after closing the previous year on March 15.
However, the payments for these invoices were entered in SAP Business One starting from January 1, and
were therefore not reconciled with any invoice or journal entry.
What type of user reconciliation method would you suggest Maria use in order to reconcile such a
large quantity of opening balances and associated payments?

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